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mariarad [96]
3 years ago
13

47 is 0.5% of what number

Mathematics
1 answer:
vodka [1.7K]3 years ago
6 0
Ok so you do 4,700 over n because it is is over of, but you don't have an of so it's n. So then you put an = sign right next to it because your doing a proportion. So then it would be 0.5 over 100 because you always have a 100 under a %. You cross multiply the numbers and get 4700 and then 0.5(n) because you don't know n. You always then put the number next to the variable under the 4700 and 0.5! You divide 0.5 into 4700 and get 9440 but you move the decimal over once because it is 0.5 and not .05. I hope this help and didn't seem too confusing. I think it might have been confusing and if it is I'm sorry!
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Find the value of annuity if the periodic deposit is $250 at 5% compounded quarterly for 10 years
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Answer:

The value of  annuity is  P_v  =  \$ 7929.9

Step-by-step explanation:

From the question we are told that

    The periodic payment is  P  =  \$ 250

     The  interest rate  is   r =  5\%  =  0.05

     Frequency at which it occurs in a year is  n = 4 (quarterly )

      The number of years is  t =  10 \ years

The  value of the annuity is mathematically represented as

             P_v  =  P *  [1  - (1 + \frac{r}{n} )^{-t * n} ] * [\frac{(1 + \frac{r}{n} )}{ \frac{r}{n} } ] (reference EDUCBA website)

 substituting values

             P_v  = 250 *  [1  - (1 + \frac{0.05}{4} )^{-10 * 4} ] * [\frac{(1 + \frac{0.05}{4} )}{ \frac{0.08}{4} } ]

             P_v  =  250 *  [1  - (1.0125 )^{-40} ] * [\frac{(1.0125 )}{0.0125} ]

             P_v  =  250 *  [0.3916 ] * [\frac{(1.0125)}{0.0125} ]

            P_v  =  \$ 7929.9

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